Under the Youth Hostel Scheme introduced in the 2011–12 Policy Address, the government pays for non-governmental organisations (NGOs) to construct youth hostels, which they then operate on a self-financing basis.
In a report published on Wednesday, the Audit Commission noted that an NGO procured 78 thermo ventilators at total cost of HK$903,000 for a hostel in Tai Po.
However, audit research revealed that the retail price for the supply, delivery, and installation of the same model was between HK$1,900 and HK$2,300.
In response, the NGO explained that the higher prices it paid were driven by several factors, including the requirement for certified installation personnel on construction sites, insurance, and a strict 21-day installation window.
The report also highlighted that the hostel procured 76 toilet paper holders at a unit price of HK$3,390 and 46 bathroom soap dispenser holders priced at HK$2,390 each, but they were never put in use.
The NGO explained that the toilet paper holders were found to be too difficult to use and that the soap dispenser holders could cause safety hazards.
The commission also noted that the government had failed to deliver the 3,000 hostel units it promised the Legislative Council in 2012, as only around 1,300 were completed as of December last year.
The commission urged the government to review the target of 3,000 units and speed up the implementation of approved youth hostel projects as far as practicable.
The administration was also urged to strengthen controls over the procurement of furniture and equipment at youth hostels, for example by boosting competition as far as possible when there is a need to conduct restricted tendering.
Secretary for Home and Youth Affairs Alice Mak agreed with the audit recommendations.
